Holloway Sleep Systems manufactures nylon mesh hammocks for a chain of retail outlets located throughout the southeast.
Question:
Variable indirect materials...... $ 5.75 per hammock
Variable indirect labor......... $12.50 per hammock
Other variable overhead ........ $ 2.25 per hammock
Salaries................ $ 78,000 per quarter
Insurance................ $ 5,000 per quarter
Depreciation.............. $ 35,000 per quarter
Required
Prepare Holloway’s manufacturing overhead budget for the fourth quarter.
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